GCC Shrink Sleeves Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The GCC shrink sleeves market is expected to register a CAGR of 2% during the forecast period (2021-2026). Plastic has modified the packaging industry's functioning overall. Packaging solutions that are cost-effective, lightweight, durable, and comfortable to the users are factors that have increased the use of plastics as packaging material.

Key Highlights

• The GCC countries, such as Saudi Arabia, the United Arab Emirates, Qatar, and Kuwait, are also anticipated to play a major role in the overall growth of the shrink sleeves market due to the urbanization and growth of industries, rise in the urbanized population, increasing demand for packaged foods, a renaissance of the labeling and packaging industry in member countries, and increasing emphasis on the use of sustainable materials.
• Rising health issues in the region and increasing the use of cosmetic products are also expected to contribute to the rising demand for the shrink sleeves market in the healthcare and cosmetics sectors.
• On the contrary, investments into manufacturing are majorly spurred by the recent economic slowdown caused by low crude oil prices and reduced activity in the upstream oil and gas industry. The years 2017 and 2018 had a severe impact on the country’s economy. Thus, it may indirectly impact the shrink sleeves market negatively.

Key Market Trends

Polyethylene Terephthalate (PET) Material to Drive the Market Growth

• The advantages offered by PET material include print that is protected from discoloration and damage from liquid spills due to the reverse printing on the sleeve, scuff-resistant cover for the print, which contributes to the growth of the PET shrink sleeves market in the region.
• Saudi Arabia currently recycles about 10% of its PET (polyethylene terephthalate) bottles. The recycling percentage is expected to grow with the increasing focus of the government toward recycling, which is likely to drive the demand for PET in the country.
• On the other hand, the United Arab Emirates is home to more than 100 different nationalities and a mix of various cultures and cuisines. These differences are strongly reflected by the food available in the country, especially in relation to sauces, dressings, and condiments, and with the growth of the food industry, the shrink sleeves labels industry also witnesses growth.
• 2018 saw the introduction of 5% VAT across a wide range of products and services and declining consumer confidence, while currency exchange rates made it more expensive for tourists to purchase beauty and personal care products. Thus, this decreased the growth of PET shrinks sleeves labels in the United Arab Emirates.

Saudi Arabia is Expected to Witness a Significant Growth

• Increased beauty and personal care awareness in Saudi Arabia due to the growing number of Saudis joining the workforce, higher disposable incomes per household, ongoing social gatherings, and participation in physical activities (due to government efforts to combat illness and promote healthy lifestyles) have resulted in increased sales of such products to some consumers. Thus, this supports shrink sleeves labels demand, despite a slight fall in overall volumes in 2018.
• Additionally, the increasing applications of shrink and sleeves in various end-use industries, such as paper and textile, food and dairy, and electronics, for labeling are expected to drive the market growth further.
• Changing consumer lifestyles and government efforts to diversify the economy and create jobs for locals influence the development of packaging in Saudi Arabia. The end of the review period saw Saudi Arabia suffer an economic slowdown due to its heavy reliance on revenues from oil exports, which saw prices fall globally.
• In FY 2019, the Saudi government introduced a 17% increase, an estimated USD 45.86 billion, in the funds allocated for healthcare and social development. Out of these allocated funds, approximately USD 12.72 billion has been earmarked for being spent on healthcare projects directly linked to Saudi Arabia’s Vision 2030. The developments in the markets for healthcare, pharmaceuticals, and cosmetics are expected to remain the primary drivers of the demand for plastic packaging products.

Competitive Landscape

The GCC shrink sleeves market consists of several regional and international players, with a significant presence in the region. Due to the huge number of competitors, the market is fragmented, with no player existing with a significant market share. Furthermore, packaging solutions demand better control of the value chain for competitive pricing and a one-point solution offered for strategic advantage.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support